After adjusting numerical data from the past for the impact of inflation, the median household income in 2018 ($63,179) is the highest ever recorded in the USA and the 3rd consecutive year (2016-2018) that produced an all-time inflation-adjusted record.  Before 2016, the peak for median household income was $61,526 set in 1999 (source: Federal Reserve Bank of St. Louis).
*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

40% of 226 economists surveyed in July 2019 believe the United States will fall into a recession by the end of 2020, while the remaining 60% believe our nation’s next recession will begin in 2021 or later (source: National Association for Business Economics).

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

 

 

 

The average interest rate nationwide on a 30-year fixed rate mortgage has dropped from 4.51% on 1/03/19 to 3.58% on Thursday 8/29/19 (source: FreddieMac).

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

 

 

 

Between 6/30/18 and 6/30/19, average home prices increased in all 50 US states.  Idaho’s +11.4% average home price gain led the nation over the last year while Delaware’s +1.2% growth rate was the nation’s smallest (source: Federal Housing Finance Agency).

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The last recession in the United States began in December 2007 and lasted 18 months.  The nation’s unemployment rate in December 2007 was 5.0%, on its way to a peak jobless rate of 10.0% by October 2009. The unemployment rate nationwide in July 2019 was 3.7% (source: Department of Labor).

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

 

 

A 65-year old spending $100,000 per year (after-tax) would need $128,008 per year (after-tax) by age 75 and $163,862 per year (after-tax) by age 85 if his/her cost of living was increasing by +2.5% per year due to inflation.

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

Stocks gained +6.9% (total return) during the 3 summers months (June-July-August) while bonds gained +4.1% (total return).  The S&P 500 was used for the stock calculation, while the Bloomberg Barclays Aggregate bond index, calculated using 6,000 publicly traded government and corporate bonds with an average maturity of 5 years, was used as the bond measurement (source: Bloomberg).

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.
Today is the 8-year anniversary since the USA was downgraded on 8/05/11 by S&P from a top credit rating.  Since 8/05/11, the yield on the US 10-year Treasury note has fallen from 2.57% to 1.85% and the S&P 500 has gained +189% (total return), equal to +14.2% per year.  The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation.  It is a market value weighted index with each stock’s weight in the index proportionate to its market value (source: BTN Research).
*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

08-09-2019

ASCENDING AFFORDABILITY

Housing affordability has reached an 18-month high. Commenting on the release of the latest Mortgage Monitor Report, Black Knight Financial Services Data & Analytics President Ben Graboske said, “The decline in 30-year rates has been equivalent to a 15% increase in buying power, meaning that prospective homebuyers shopping for the average-priced home could now purchase $45,000 more than last fall while keeping monthly payments the same.”

STILL STEADY

Mortgage interest rates remained stable according to Freddie Mac’s Primary Mortgage Market Survey for the week ending August 1. Regarding the absence of movement, Freddie analysts said, “The combination of low mortgage rates, tight labor market and high consumer confidence should set up the housing market for continued improvement in home sales heading into the late summer and early fall.”

MONITORING VS. MONEY

Data breach victims hoping to get a $125 check from Equifax will be disappointed. Equifax’s settlement with the Federal Trade Commission for the security breach that exposed private information of nearly half the U.S. population included a choice between cash and a combination of free credit monitoring and identity theft insurance for affected consumers. So many people have chosen the cash option that the anticipated $125 amount will be drastically lower. The FTC says the monitoring and other protections are a far better value.

CAMARADERIE COST?

What would you pay for the ability to choose your neighbors? Quite a bit according to a survey by rent.com. Single-family home dwellers are willing to pay an additional $157/month for the privilege of choosing their neighbors, while those in multi-family properties would go to $179/month. The “neighbor premium” also varies by area. Urban residents are willing to pay an extra $187/month to select neighbors, while those in rural and suburban communities said they would pay $161 and $158/month respectively.

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

08-02-2019

DECREASED INCREASES

There’s been a dip in home price gains. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 3.4% annual gain in May, down from 3.5% in the previous month. S&P Dow Jones Indices’ Philip Murphy said, “Nationally, year-over-year home price gains were lower in May than in April, but not dramatically so. Among 20 major U.S. city home price indices, the average YOY gain has been declining for the past year or so and now stands at the moderate nominal YOY rate of 3.1%.”

LONGER LISTINGS?

It took longer to sell a home in June than it did in May. The National Association of Realtors® (NAR) reported that the average time on market in June was 27 days, up from 26 in May and June of 2018. More than half of homes sold in June (56%) were on the market for less than a month.

PURCHASE POWER

Mortgage interest rates took a slight downward turn, giving a boost to home buyers’ purchasing power. Rates for a 30-year fixed rate mortgage are still hovering near three-year lows according to Freddie Mac’s Primary Mortgage Market Survey for the week ending July 25. NAR® President John Smaby said, “Securing and locking in on a mortgage now – given the current, favorable conditions – is a decision that will pay off for years to come.”

FIN FEARS

A national real estate brand is trying to ride the Discovery Channel’s wave. Century 21 is hitting social media to promote “Shark-free Listings” as Discovery kicked off its 31st season of Shark Week. All week, Century 21 will be responding in real-time to anyone on social media that expresses their fear of sharks with home listings located in the farthest spot from the coasts: Northern Kansas.

*The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.